Just as I write this post, news came in that a Greek debt deal (for unsecured private bondholders) was rejected by EZ finance ministers. Risk markets were mixed last night, with the US dollar falling, gold rising alongside a resurgence in commodities, whilst Euro bourses put on gains, the US market is flat as a pancake as low volume (but not by algo-bots) continues.
In detail:
The UK FTSE put on 54 points or 1% to finish at 5781 points, building on its breakout above its resistance level at 5700 points whilst the German DAX was also up, gaining 0.5% or 32 points to 6436, also building on its bullish case, possibly heading to its pre-correction high at 7000 points:
The Euro (EUR/USD) breached 1.30 against the USD, currently trading at 1.302, breaking out from its November 2011 downtrend (from 1.38 to 1.27) as the USD Index fell 0.5 points, currently at 79.9, well below its short term trendline and just above support at 79.4 points.
US markets were very flat, although corporate earnings continue to be solid, moves on the upside with energy stocks were negated by drops in industrials. The broader S&P500 Index finished up – barely – to 1316 points, on low volume. The Dow Jones was down 12 points, flat, to 12708 points. Finally, the tech heavy NASDAQ Composite was also flat, at 2784 points.
The ever resilient (bubblicious?) AUD surged again overnight, above 1.05 against the USD this morning, currently trading at 1.053, while it remains above 81 cents against the Euro.
To commodities, and WTI crude, was up over 1%, flirting with $100 a barrel whilst gold also put on over 1%, building on its short term trend, currently at $1676USD an ounce, waiting for the open of the Asian session.
Silver was up 33 cents or 1% as well, to be at $30.70USD per ounce on the spot markets. Aluminium gained over 1% to be just below $1 per lb, copper up 1.8% building on its breakout – looking like heading for $4USD a lb – and nickel was flat, retracing some of the gains of last week, but still in a good uptrend, on a bullish day on the London metals market (LME).
The Aussie SPI Futures are pointing to a slightly higher open for the S&P/ASX200 index, probably opening around the 4235 points level, although leads are mixed.
As I said earlier this morning, Australian corporate earnings season officially starts today, with fairly light data (except CPI), the ongoing Chinese New Year celebrations and the Australia Day holiday keeping things quiet. For now;
Trading Day will cover the Asian market session and the “ASX8” stocks after the close in the afternoon.